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Eni Results for Third Quarter & Nine Months of 2019

Gasoil News - Published on Mon, 04 Nov 2019

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Eni’s Board of Directors approved the Group results for the third quarter and the nine months of 2019 unaudited. Claudio Descalzi, CEO of Eni, said “Eni has delivered robust results in the quarter, while also finalizing the acquisition of Exxon’s assets in Norway and a 20% stake in the Ruwais refinery in the UAE, providing a further boost to growth and stability. We achieved significant 6% growth in upstream production in the quarter, mainly from Egypt, Kazakhstan and Ghana, as well as first production from Mexico, just 11 months after the final investment decision was made. The growth in production and results from gas sales and oil marketing allowed us to generate significantly better cash flow of €9.4 billion in the first nine months of the year, despite an adverse trading environment. This is sufficient to cover not only the €5.6 billion in net investments during the period, but also the planned dividend and buy-back for the entire year, forecast at approximately €3.4 billion. This shows that Eni's efficient portfolio can achieve breakeven at prices well below current difficult conditions. In particular, in the third quarter Brent prices decreased by 13 $/barrel and European gas prices fell by over 50%, as the downward trend which began in 2018 gathered pace. From the end of the year, the acquisition in Norway, adding further production of around 100 thousand barrels per day, in addition to the stabilizing contribution from our stake in the Ruwais refinery, which will increase our current refining capacity by 35%, will contribute to the robustness of our results. Finally, it is important to highlight the continued progress from our complementary businesses of the future, from bio-refineries to renewables and the first waste to fuel pilot plants, which draw on in-house research and will become more and more our second exploration activity” in terms of new business generation. On this basis, I am very confident in Eni’s position as I look to the near future as well as to the medium and long-term transition.”

Hydrocarbon production - Strong growth in the third quarter: 1.89 million boe/d, up by 6%, when excluding price and portfolio effects, the highest ever third quarter (1.85 million boe/d in the nine months, up by 1.8%). Further production ramp-up anticipated in the fourth quarter. Added 240 kboe/d from start-ups and ramp-ups in the nine-month period, with the bulk coming from Egypt, Libya, Ghana, Angola, Mexico and Algeria

2019 main start-ups - Area 1 offshore Mexico, started up in early production in just eleven months after the FID. in Egypt, the Baltim SW gas project in the Great Nooros Area, in just nineteen months after the FID, and recent near-field oil discoveries in the Melehia SW development area. Trestakk field in Norway and the Berkine oil field in Algeria.

Portfolio - Vår Energi, the joint venture between Eni (70%) and HitecVision (30%), announced the acquisition of ExxonMobil’s upstream assets in Norway, which are expected to produce 150 kboe/d in 2019, with a production target in excess of 350 kboe/d by 2023. The consideration of the transaction amounting to $4.5 billion will be funded by Vår Energi’s own cash flows and dedicated credit lines. Closing is expected by the end of 2019 with accretive effects on the net cash flow. Signed agreements to divest exploration permits in Kenya, Morocco and Mozambique to Qatar Petroleum. Divested a 20% interest in the Merakes discovery to Neptune.

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Posted By : Rabi Wangkhem on Mon, 04 Nov 2019
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